[This article was written by Noelle Fauver.]
As of 2018, Millennials made up nearly a quarter of the total U.S. population – that means they hold a great deal of buying power. How much buying power? A predicted $1.4 trillion. It’s crucial for retailers to understand the nuances of Millennial spending habits in order to capitalize on this subset of the population. We’ve highlighted several of the most prevalent purchasing preferences of Millennials; double-check the trends below against your marketing efforts and make sure you’re implementing the right strategies to attract the 83.1 million Gen Y shoppers in the United States.
1. Millennials Prefer Generic Brands
If you’re a retailer attempting to draw in Millennial buyers, you may not need to shell out more for the bigger names. Millennials are less likely to be swayed by brand name; in fact 60% of millennials say they prefer purchasing from generic brands over name brands.
2. Millennials Spend More on Convenience
The more convenience you offer to a Millennial, the more likely they are to purchase from you. The average Millennial reports spending a total of $5,736 on non-essential purchases, with over 60% of Millennials reporting that they’ll spend more than $4 on a single coffee.
Why do Millennials justify this type of admittedly exorbitant expense? Convenience. To improve convenience and meet the demands of Millennial consumers, consider implementing these strategies into your service:
- An intuitive app: Millennials are attached to their smartphones – an easy-to-use app can provide prospective consumers with instant access to your products and services
- Delivery: Can you deliver your product or service directly to your customer? Companies that are able to take the legwork out of purchasing stand to make more.
3. Millennials Are Shopping from Their Phones
Is your website optimized for mobile users? Up to 64% of Millennials complete transactions directly from their smartphones. If a user heads to your site and finds loading speeds too slow, strange formatting, or difficult navigation, they’ll quickly exit and head to your competitor’s. Ensure your website is optimized for any type of device to ensure a seamless experience.
4. Millennials Rely on Online Reviews to Guide Purchasing Decisions
Reputation matters – are you keeping tabs on what your online reviews are saying about your brand, service, and products? Up to 40% of Millennials refer to online reviews and testimonials before actually making a purchase. Yelp reviews and customer testimonials will shape the way Millennials view your brand – and help decide whether or not they shop from you. If you have negative reviews, respond to them. If you have positive reviews, share them. By cultivating and maintaining a positive online reputation, retailers can attract and retain millennials shoppers. In addition to monitoring your online reviews, ensure your good reputation is well-warranted by providing superior customer service, fantastic product, and an easy buying process.
Millennials hold the majority of the buying power – is your business keeping up with their demands? Consider incorporating the above strategies into your marketing and sales strategies and pull in Gen Y buyers to increase your bottom line in 2020.
Noelle Fauver is a contributing editor for 365 Business. She has a B.A. in Communication Studies from California State University, Northridge and experience in marketing, finance, and small business management. She volunteers on the board of the San Diego American Marketing Association as the Event Experience Chair to help local marketers in the area develop their professional repertoire and connect with other professionals. She loves curling up next to the fire with a good book on a rainy day with a bowl of homemade soup. But most of all, she loves writing great content.